. . . was signed into law by President Franklin Roosevelt on this date in 1935.
My parents are receiving Social Security payments. Should I be worried that their monthly checks will be cut and that I will have to make up the difference?
No, there are no plans to reduce benefits for current retirees. In fact, benefits will continue to grow annually with inflation. Even without any changes, current benefits are expected to be fully payable on a timely basis until 2041.
I’m 35 years old in 2007. If nothing is done to change Social Security, what can I expect to receive in retirement benefits from the program?
Unless changes are made, at age 69 in 2041 your scheduled benefits could be reduced by 22 percent and could continue to be reduced every year thereafter from presently scheduled levels.
I’m 26 years old in 2007. If nothing is done to change Social Security, what can I expect to receive in retirement benefits from the program?
Unless changes are made, when you reach age 60 in 2041, benefits for all retirees could be cut by 22 percent and could continue to be reduced every year thereafter. If you lived to be 101 years old in 2082 (which will be more common by then), your scheduled benefits could be reduced by 25 percent from today’s scheduled levels.
Should I count on Social Security for all my retirement income?
No. Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on a “three-legged stool” of Social Security, pensions and savings. American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans.
Is there really a Social Security trust fund?
Yes. Presently, Social Security collects more in taxes than it pays in benefits. The excess is borrowed by the U.S. Treasury, which in turn issues special-issue Treasury bonds to Social Security.
More informative Q&A about Social Security.